Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1887-12-21
FOREIGN Intelligence
CANADIAN PACIFIC SECURITIES
Discussed by the Financial News o!
London.

LONDON, Dec. 90.
The Financial News publishes an articl.
(which is exciting great interest. headed ''Ths
Canadian Pacific guarantees" 1t refers I,
the current report that the Canadian govern
tment is about to take the Canadian Pa
citic railway giving as return a perpetua
guarantee of three per cent.
The proposal mentioned in the Times il
the subject Of pamphlet just issued by al
anglo Canadian; the writer strongly sup
ports the suggestion that the line be acquired
Sby the Dominion government, obtaining six
district privileges in exchange for the guar
antee.
There are fifteen million acres of selected
land along the line of the railway, monopoly
rights, free use of the telegraphs, and the
Fright to transport troops and stores at a work
lug cost of half the profits beyond the three
per cent. coutrol rates.
The Anglo-Canadian maintains strongly
that both the sharehol ers and the commu-
nifty would make an excellent bargain on
.these terms.
The News says: No doubt but it occurs
TO us that these 6 concessions are the extreme
price we pay for perpetual 8 per cent
guarantee. The risk to the dominion gov
'ernment is very small. Such risks as there
X<AIt 10 the uouiiliO Cduuot eutuc iiito p
Grafton for six years, because the present
guarantee has that period to run, consequent
.ly hat would be acquired would not be Cana
| iian Pacific of today, but after six years
|futher development, the surrender of mol
Inopoly rights in the northwest and the open
ling of the whole country to railroad enter
prise. would alone almost compensate the
Ithe Dominion for the per cent guarante,
Ientailing as it wonld, the immediate and
Extensive growth of trade and industry iI|
Manitoba and the northwest, and in a second i
larry degree in Eastern Canada. Moreover id
would put an end to such serious compli-
cations as that which recently threatened tht
peace of the northwest. Add to this the enor-
smous advantage which the government con-
1trols in the matter of rates, and which will
lbe an essential feature in any purchase
scheme.
The Anglo-Canadian deals shortly with the
possibility that the Grand Trunk might also
1claim to be bought up. This the pamphletei
4lisposes of on the simple ground that the
3Grand Trunk begins and ends in the United
States. The capital per mile is three times
Hines that of the Canadian Pacific. 1t has
|no great privileges to exchange for guar
3antee. 1t has developed into line. In Al
sword there is no paralelism between the twoI
leases. What we suggest fair price for
|the guarantee will be the last five concessions
ssalready named and that the shareholders
should retain the land rights, giving up toI
the government the railway monopoly, tele-
graphs the right to transport troops, etc. |
Eand control the rates and half of the profits
beyond the three per cent. guarantee.
On these terms it will be quite fair to the
government and not too hard for the share
lholders. The lands remain to be disposed
Rof as bonus to shareholders after being pui|
into a marketable form to tempt the present
prospective settlers to purchase, even at al
valuation of 81 per acre instead of from So
Ito S. at which sales were actually being
made. Land warrants give bonus of ~
|shillings per share. At three shillings perl
acre it would bring Go shillings per share
This would probably be realized in few
years. Then shareholders might fairly es-
innate the present market value at 3 peri
cent, perpetual guarantee at So, surplus
rights of stock issued separately at Is, and
land warrants at 20, or l20 shillings in all
Iper share.